DRS Turns Down
L-3 Takeover Bid
And Shares Surge

By

Jonathan Karp Staff Reporter of THE WALL STREET JOURNAL

Updated July 2, 2004 12:01 a.m. ET

DRS Technologies Inc. said it rejected an unsolicited offer from fellow defense contractor L-3 Communications Holdings Inc. to be acquired for $42 a share, and DRS's stock soared 16% on the expectation of further takeover attempts at that price or higher.

The L-3 offer was made in June and valued DRS at nearly $1.1 billion. DRS, a Parsippany, N.J., defense-electronics company, said yesterday that after reviewing the offer with financial adviser Bear Stearns & Co., its board of directors unanimously determined that it...